INNOVATION IN SUPPLY CHAINS

Year 2011, Volume: 3 Issue: 1, 319 - 331, 01.06.2011

Robert Morvai Janos Varga

Abstract

Globalization is such a phenomenon, which provides opportunity for economic organizations to acquire more types of resources thanks to the expansion of market opportunities. In this globalized world it goes without saying that a high quality product or service itself is not enough to achieve long-term goals. The competition (which today basically exists between supply chains/networks, rather than between firms) is getting harder and harder in order to attract new customers, to increase market share, or just to maintain the existence. The competition always forces companies to aspire after new things. This constraint refers not only to products and services, but to the technology, to the processes, to the leadership styles, to the organizational culture and to the establishment of partnerships as well. To meet the requirements of today’s competition, organizations must harmonize their resources and processes within the confines of some kind of cooperation in order to create value for the customers and for the national economy as well. The aspiration for newness is one of the most important key factors of the competitiveness of organizations. The efficient operation of a firm depends on several factors. Among these factors, innovation and partnerships (between companies and their suppliers/customers) are the most significant ones. Consequently, by applying new methods and innovation, competitive advantage can be achieved not only for a company, but for the whole chain as well. This paper (based on a Hungarian, nationwide research) demonstrates the role of innovation in competitiveness, moreover it gives a general idea about how inter-organizational co-operations influences the development and realization of innovation processes which affect more member of the supply chain

Keywords

innovation, supply chains, cooperation networks, competitiveness

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